The Whole Bread Company also allocates fixed manufacturing overhead to

The Whole Bread Company also allocates fixed manufacturing overhead to

The Whole Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor- hours. For 2012, fixed manufacturing overhead was budgeted at $ 3.00 per direct manufacturing labor- hour. Actual fixed manufacturing overhead incurred during the year was $ 284,000.

Required1. Prepare a variance analysis of fixed manufacturing overhead cost. Use Exhibit 13- 6 ( page 559) as a guide. 2. Is fixed overhead underallocated or overallocated? By what amount? 3. Comment on your results. Discuss the variances and explain what may be driving them.